Small Balance Multifamily Investment Snapshot — Q1 2019

Adjusted estimates of 2018 lending volume of new multifamily loans with original balances between $1 million and $6 million jumped to $53.1 billion, the highest level of activity in Chandan Economics’ post-financial crisis estimates. Initial readings for Q1 2019 totaled an annualized $48.7 billion. This would represent a modest pullback.

National average cap rates for small loan-backed multifamily have been between 5.9% and 6.1% for more than three years. In the first quarter of 2019, small balance cap rates dropped back to 5.9%. This is a decline of 5 basis points (bps) from the previous quarter and down 16 bps from a year earlier.

Here’s a quick look at the small balance multifamily finance and investment benchmarks for the first quarter of 2019.

For more insights on the small balance multifamily market, view our recent webinars on the topic and read our Q1 2019 small balance multifamily report.